Climate Risks Are Already Destabilizing Insurance Markets and Threatening Americans’ Financial Security

Reinsurance companies sell insurance policies for insurance companies, which insurers need if they have to pay out very large claims that would otherwise drive them out of business. This type of coverage is both essential and expensive in Florida because the state sees so many catastrophic weather events. The cost of reinsurance in Florida has risen 54% from 2019, with much of the cost passed along to families through higher home insurance while the amount of coverage insurers purchased only rose 15%.